Annual report on MCN 3333 to 3339 year ending 31 December 2008

Abstract

MCNs 3333-3339 form a group of tenements that surrounds the MLN 1058 which contains Toms Gully Mine, and encompass at least one prospect - the William Prospect. These MCNs were acquired by GBS Gold Australia Pty Ltd in July 2007 from Renison Consolidated Mines NL and Toms Gully Holdings Pty Ltd. These tenements were first applied for some twenty years ago and have been explored sporadically. The Project area is located within the northern portion of the Pine Creek Orogen. The Mineral Claims N3333-3336 mainly lie within the Wildman Siltstone, a sequence of tightly folded strata with an unconformable contact between the Wildman Siltstone and the Koolpin Formation. A small portion of the Koolpin Formation is also covered by the tenements. Towards south-east, Mount Bundey Granite intrudes the orogenic sequence. In the reporting period ended on 31 December 2008 exploration activity included technical review, which identified gold potential of the project area. This group of tenement is important due to its close proximity to the Toms Gully gold deposit and proximity to treatment mill. Other activities included planning for the upcoming field season, tenement administration and report preparation. During 2009, GBS Gold Australia will embark on ground exploration program in the area. As a result, the project area will undergo ground-truthing, soil/rock sampling, and if warranted, will lead to Air Core or RC drilling program.